THE Chinese market offers huge business opportunities for Thai companies, said Saravoot Yoovidhya, the CEO of the Thai company TC Pharmaceutical Industries (TCP), a conglomerate renowned for its consumer goods distribution and its popular Red Bull drinks.

“The Chinese Government’s favorable policies for foreign investment have enticed an increasing number of Thai businesses to explore opportunities in the Chinese market,” Yoovidhya shared in a recent interview with CCTV, China’s State television.

He also emphasized the significant impact of initiatives like the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RCEP) in bolstering investment and trade interactions between China and Thailand. With the approaching 50th anniversary of Sino-Thai diplomatic relations, he envisions a further boost in cultural and economic exchanges between the two nations.

Having participated in the China International Import Expo (CIIE) for five years, TCP has unveiled several new products at the event, such as flavored variations of Red Bull in 2019, sugar-free fruit-flavored Red Bull drinks in 2022, and a bottled version of the beverage last year. The company also introduced Chinese consumers to other products like the sports drink Sponsor, sunflower seed snack Sunsnack, and customized energy drinks for men and women respectively.

Over the past five years, TCP has invested a total of 4.36 billion yuan (US$602.6 million) in its production facilities and operational centers in China. Their production facility in Neijiang, Sichuan Province, inaugurated in December last year with an investment of 2 billion yuan, boasts an annual capacity of 1.44 billion cans of beverages. Aimed at sustainable manufacturing, the production base integrates manufacturing and storage, with the initial two production lines producing 2 million cans daily.

Meanwhile, TCP’s new production base in Guangxi, with a 1.3 billion yuan investment, is in progress, with plans to cater to the Southeast Asian market upon completion.

Kajornsak Pliensakul, TCP’s head of supply chains, highlighted China’s highly competitive supply chain network as a key factor driving the company’s continued investments in the market.

“In China, it’s possible to swiftly respond to market changes and adjust production plans to meet the demand of our clients. We can easily access suppliers for design, R&D, packaging, and testing locally,” he said.

According to media reports, TCP’s late founder Chaleo Yoovidhya made his initial foray into China in 1993, building a factory in Hainan Province.

(SD News)